Move into obesity will require deep spending by Roche

Roche is now a clear player in the obesity race via its acquisition of Carmot. But the $2.7 billion up front it paid to buy the IPO candidate will likely be one of the smallest parts of its investment if the Swiss pharma wants to compete with Novo Nordisk and Lilly in obesity.

Roche (SIX:ROG; OTCQX:RHHBY) became the latest large pharma to take the plunge into obesity on Monday with the takeout, which includes up to $400 million in milestones on top of the upfront payment for a total deal value of $3.1 billion. California-based Carmot Therapeutics Inc. had filed for an IPO last month; the biotech raised $150 million in a May series E round led by Deep Track Capital...